Uber Technologies Inc (NYSE:UBER) shares are trading higher Monday. Wells Fargo raised its price target on the stock. Here’s what you should know.
- Uber Technologies stock is gaining positive traction. Why is UBER stock advancing?
Wells Fargo Raises Price Target to $92
Wells Fargo analyst Ken Gawrelski kept the Overweight rating on Uber shares in place and lifted the price target to $92 from $89. That target is about 33% above where the stock currently trades. Across Wall Street, analysts rate Uber a Buy on average, with a consensus price target of $103.74.
Two other recent analyst moves came with positive ratings:
- Scotiabank: Sector Outperform initiated, price target of $100 (Sept. 9)
- Wedbush: Outperform maintained, price target of $91 (Sept. 8)
All three targets sit above the stock’s current price.
At around $69, shares still sit near the bottom of their yearly range. Over the past year, Uber has traded between $65.41 and about $101.30. The stock is about 5% off its low and roughly 32% under its high.
BNP Paribas Equity Research also made a bullish case on the stock last week. Nick Jones, a senior analyst at the firm, set a $106 price target on Uber shares.
Jones expects robotaxi operating costs to fall from near $1 per mile today to between 16 cents and 42 cents. Vehicle build costs drive much of today’s expense. Using Alphabet’s Waymo as a benchmark, Jones puts recent all-in build costs at about $150,000 per vehicle. Tesla is targeting roughly $30,000 for its Cybercab. BNP Paribas sees $60,000 to $80,000 as more realistic in the near to medium term.
Cheaper rides could grow the ride-hailing market and let Uber capture more autonomous miles, Jones said, citing Uber’s global scale, large customer base and growing autonomous vehicle partnerships as advantages.
UBER Shares Are Climbing
UBER Price Action: Uber shares were up 2.07% at $69.53 at the time of publication on Monday, according to Benzinga Pro.
Image: Shutterstock
Recent Comments